This article by Eric Jou first appeared in the China Daily on 24 December 2010.
The Chinese video game industry is growing up and changing the face of the gaming world.
“The Asia-Pacific region and Europe should end up taking 90 percent of online and mobile revenue,” says Tim Merel, founder of the London-based digital media investment firm Digi-Capital. “If you aren’t in China, you aren’t anywhere.”
The Chinese online and mobile gaming industry is expected to earn more than 28 billion euros in revenue by 2014 and China will account for half of that pie, figures from Digi-Capital show.
China is expected to drive the future of the industry and figures from China game industry analyst Nico Partners also see the market growing by 20 percent a year for the next four years.
Similarly, China’s online and mobile gaming market promises an estimated revenue stream of $6 billion (4.56 billion euros) this year and projected revenues of $18 billion by 2014, compared to the $2 billion and projected $3 billion for the United States.
Lured by the huge potential, more European game makers are looking to set up their bases in China.
This article, written by Christian Nutt, was first published by Gamasutra on December 9, 2010.
Tim Merel, managing director of investment advisory firm Digi-Capital, delved into the present and future of the global game market at a Gamasutra-attended lecture during GDC China in Shanghai earlier this week.
The reason for his talk? “Because investing and growing internationally is very exciting, but isn’t necessarily as simple as you might hope.”
Trends in The Video Game Market
According to Digi-Capital’s research, “online and mobile video games should grow the total video game market size to $87 billion in five years.” These games will, at that point, constitute half of the total market revenue; on the other hand, the “console sector is flat to down.”
“Asia Pacific and Europe should end up taking 90 percent revenue share of online and mobile,” said Merel. Of that slice, half will be China. His conclusion? “If you aren’t in China, you aren’t anywhere.”
Digi-Capital’s Tim Merel has been invited to discuss Chinese international games investment opportunities at GDC China in Shanghai on 6th December http://slidesha.re/fNZ0Sh
Commenting on the session, Merel said, “When I gave the games investment keynote at the Shanghai World Expo earlier in the year http://slidesha.re/dJwTaX, I was impressed by the quality, drive and growth of the Chinese games businesses I met. I have never seen so many people focused on building great companies. What also struck me was the almost universal desire to invest and grow internationally, leveraging their existing strengths.
So I was pleased to be invited back to talk to Chinese companies and investors about international growth and investment opportunities. I believe the future lies in co-operation between East and West, with significant opportunities for Chinese investment and partnership internationally and international investment and partnership within China.”
Digi-Capital’s Global Video Games Investment Review update for November 2010 is now live and downloadable from SlideShare.
This article was first published in two parts by Games Industry.biz on 23 November 2010, as part of Tim’s monthly column ‘Money Games’.
Some people find dealing with potential buyers difficult. Some won’t get back to you, others don’t make an effort to understand your business, some think your business isn’t worth much, and occasionally they can seem quite rude. There is a good reason for this, which makes the exit process much easier once you learn to accept it – buyers are looking for a reason to say “no” as soon as possible.